Retail investors roundly ignore World Cup rallies
According to the latest Halifax Share Dealing Market Tracker just two per cent of investors said they’ve sought exposure to Brazil, despite research indicating that four out of the previous six World Cups have been followed by an improvement in the rate of consumer spending growth in semi-finalist countries.
A mere one per cent of investors said they would look to take advantage of a ‘feel good’ factor boom in Germany or Argentina.
Despite England’s early exit from the tournament almost eight per cent of investors say they’re seeking returns from domestic companies with a history of success during sporting events.
Damian Stansfield, managing director of Halifax Share Dealing, said: “Since 1990 countries that have reached the semi-finals of a World Cup tend to see consumer spending grow in the year following the Finals, and the timing and extent of the improvement in the period after a successful World Cup suggests some of the increase may be due to the ‘feel good’ factor associated with national sporting success.
“However, consumer spending is mostly driven by important economic factors such as employment and earnings growth, and investors need to be comfortable that any investment is being made for the right reasons.”